Sunday, January 6, 2013

Now that the Royal Canadian Mint will start taking pennies out of
circulation next month, the elimination of the nickel could be next.

Finance Minister Jim Flaherty said the penny has become a nuisance and
was costing more to produce than it was worth.

Former
Bank of Canada economist Jean-Pierre Aubry said the nickel is also becoming
obsolete and should be next in line for retirement.

Aubry said dumping the nickel should be part of a larger strategy to
retool the Canadian currency.

This could include creating a new coin to replace the five-dollar bill;
adding a 20-cent coin and eliminating the quarter; creating a $200 bill; and
reducing all coin sizes significantly to ease the burden on pockets.

David Barnabe of Finance Canada said the government has no plans so far to
eliminate the nickel.

New
Zealand eliminated its five-cent coin in 2006 after dumping its penny and two-cent
piece and Australia’s government has been considering ending production of its nickel.